No cessation of trading liability for mere non-submission of confirmation from creditors

M/s. Flo Dyne Controls (India) Pvt. Ltd. Vs ITO (ITAT Mumbai) In so far as addition made u/s. 41(1) of the Act is concerned the Assessing Officer after going through the balance sheet of the assessee noticed that assessee has shown liability of Rs. 75,82,362/- as payable to M/s. Camy Plant, the assessee was required to furnish the confirmations from the creditors and also required to explain as to why the same should not be treated as cessation of liability u/s. 41(1) of the Act. Assessee vide letter dated 01.03.2014 submitted that in its case the conditions u/s. 41(1) are not satisfied as the...